7/11 Sai Yuan Proposal

[silsburyhill]

Firstly, my idea, no arm twisting from Thai relatives, am thinking of investing in a 7/11 franchise in the top half of Sai Yuan. Not really my cup of tea, but believe this area could well do without yet another massage parlor and believe risk minimal with 7/11's. And please save me the retail advice, have long experience already. Thanks. I also have an idea re outlay.

There are already three 7/11 outlets along this very long soi, but the area between the 7/11 located at the Viset Road end, and the one opposite the small Tops has a dearth of anything that anyone living in the area actually needs.

Nothing other than two very small convenience (read the odd can of mackerel/pack of mosquito coils) stores at over and above prices, (they tell me they buy from retail shops and sell at a couple of baht higher only). Whilst I appreciate their trying to make a living, hardly competitive marketing is it? Not to mention being of any practical use to the local community.

One of these shops selling women's clothing does have a small 'fridge selling basic Thai beer and whiskey, along the entire 4-5 km stretch of 'beauty'/laundry/massage and yet more 'beauty' shops. To wit, there's bugger all other than getting a massage and your laundry done. And this where a new branch of the well known Thai/Italian fusion Farang restaurant has recently opened.

Good idea? Would have posted in the Business forum, but this pertains to just one small patch of Phuket.

[stevenl]

Only judging from number of visitors I would prefer to invest in a Supercheap.

[steelepulse]

So is this the area close to the mosque? Not sure, but maybe the Muslims living in this area don't want a lot of alcohol being sold close by. Might want to check on that. Any difference in price between a 7/11 and a family mart? I'm pretty sure supercheap isn't franchising, but rather the family was expanding on the original big shop and I recall reading that they needed to do something besides just their one big shop in Phuket Tow.

[cdmtdm]

i think you will find it difficult to do it as a Farang here in Phuket , read the blurb from 7/11 ... its for Thais and just not any Thai ...if you have not already done the research, then best u do it ,,, but yes i like the 7-11 concept ...

[Hostile17]

read a lot of stories about bar girls saving up and buying 7/11's so any thais can get them with a bit of funds and a usefull mouth. Op you may need to get down a dirty.

Supercheap isnt for sale, only the owner of supercheap starts new supercheaps. He's not dumb enough to franchise it when hes making 20-40k usd per day with most of his small outlets. the one next to me makes from 1 to 2mil per day and the cashier are making up to 30k per month with comissions.

Good idea would be to start your own type of shop that could be sold as a franchise later. It's not that hard, even buying from supercheap you could sell at 7/11 prices and you could get your own trademark snacks that dont succk for farangs. Having 40-50 different snacks for farangs by farangs would secure the whole southern phuket alliance of white folks

Edited July 7, 2012 by Hostile17

[NomadJoe]

Why not. Even in a saturated market their profitability doesn't seem to suffer much. In Patong on Rat-U-Thit rd there are two 7-11's separated by a Family Mart on one side of the road, with another 7-11 across the street. I'll have to snap a pic next time I am down there.

[cdmtdm]

its an educated Thai monopoly ,,, bar girls wont cut it unless they have the necessary business degrees ...

[Hostile17]

thats not many, on my street within 100 meters theres 3 7/11/family mart and within 300 meters theres 12 of them

Edited July 7, 2012 by Hostile17

[silsburyhill]

The mosque isn't an issue, the 7/11 on the way to the Nai Harn end is closer than this. Also, booze isn't the motivating factor, particularly given the limited sales times. It's simply that there's virtually nothing apart from packs of Mama noodles at the other two. My point is that even the Thais prefer a 7/11 to the local m&p's, given more choice and cheaper pricing.

Also, this has nothing to do with Supercheap. Although a 'version' of it is under construction right in front of those ugly 'Portugese style' houses farther toward the Viset Road end.

I will be having nothing at all to do with the place other than being the patron of a Thai national family member recently graduated from business school. And again, my idea, and I believe a better one than the old farang guy regularly seen checking up on his teeluk at yet another newly opened massage parlor nestled in between several others.

Thank you all for your input.

[Shot]

My point is that even the Thais prefer a 7/11 to the local m&p's, given more choice and cheaper pricing.

I must disagree with you there. Thais will flock to an m&p over 7/11 if they have the right mix. And, that is the key to having a Farang following as well. 7/11s are restricted to what they can buy; m&p can buy what they want. If an m&p shops smart, they can offer same price as 7/11 on most products, and customize there stock to fit all needs. Customers can drink a beer on site and buy 1 cigarette versus the: Get your shit, and get out 7/11 approach.

[Hostile17]

My point is that even the Thais prefer a 7/11 to the local m&p's, given more choice and cheaper pricing.

I must disagree with you there. Thais will flock to an m&p over 7/11 if they have the right mix. And, that is the key to having a Farang following as well. 7/11s are restricted to what they can buy; m&p can buy what they want. If an m&p shops smart, they can offer same price as 7/11 on most products, and customize there stock to fit all needs. Customers can drink a beer on site and buy 1 cigarette versus the: Get your shit, and get out 7/11 approach.

Always starting troubles arent you?

My house is on a street where there was no 7/11 yet 2 massive moobaans are located there and a very busy road.

They recently opened a 7/11 oposite of the mom&pop shop that has EVERYTHING including delivery and veggies/meat

Mmom&pop is going out of business quite fast after 2months.

[fiddlehead]

Sad news.

Way too many 7's now.

Oh well. Progress!

At least we'll be able to get change almost anywhere.

I like Mom and Pop myself. Has some character and maybe even something different.

But they are dropping like flies.

Soon Rawai will be nothing but 7/11's (and equivalent), Italian restaurants, massage parlors and girlie bars.

All in a short 11 years. (OK, had a few massage places before Y2K)

New Jersey here we come.

[Guest]

I like few mom and pops, but the 7/11 often delivers better quality / fresher products than the family shops. As an customer I also know what I can find from 7/11. This applies to almost any 7/11 in the country. Few exceptions with pork and alcoholic products.

Ban Bang Rong had an 7/11 for years with lots of customers. Supercheap open an shop next to the 7/11 and nowdays basically all the customers use the Supercheap. That might be your possible pitfall.

[Guest]

Supercheap isnt for sale, only the owner of supercheap starts new supercheaps. He's not dumb enough to franchise it when hes making 20-40k usd per day with most of his small outlets. the one next to me makes from 1 to 2mil per day and the cashier are making up to 30k per month with comissions.

I guess that 1 to 2 million bath refers to the sales, not to the earnings.

For sales 1.2 million would be 50.000B/hour or 833 bath every minute of the day.

[Hostile17]

Supercheap isnt for sale, only the owner of supercheap starts new supercheaps. He's not dumb enough to franchise it when hes making 20-40k usd per day with most of his small outlets. the one next to me makes from 1 to 2mil per day and the cashier are making up to 30k per month with comissions.

I guess that 1 to 2 million bath refers to the sales, not to the earnings.

For sales 1.2 million would be 50.000B/hour or 833 bath every minute of the day.

-> earnings.

owner of supercheap is massively rich

[Guest]

Supercheap isnt for sale, only the owner of supercheap starts new supercheaps. He's not dumb enough to franchise it when hes making 20-40k usd per day with most of his small outlets. the one next to me makes from 1 to 2mil per day and the cashier are making up to 30k per month with comissions.

I guess that 1 to 2 million bath refers to the sales, not to the earnings.

For sales 1.2 million would be 50.000B/hour or 833 bath every minute of the day.

-> earnings.

owner of supercheap is massively rich

I find this hard to believe.. not the one that the owner is rich, but that one small super cheap would generate 1 to 2 million bath earnings each day.

If their earnings from the sales would be 5%. That would be sales - (buying price + transportation + wages + interests + throwing away expired products + etc). That would mean that this example shop would sell 16.600B/minute. With 4 counters that would mean that each counter would sell 4.000 baht each minute 24/7/365. If one customer takes an average of 30 seconds with an counter (counting, packing, money in, money out), then each of these sales would be an average of 2.000 bath. I find that very hard to believe. At least I'm well below that rate with my 200B bills.

[cdnvic]

One post was removed due to improper quoting.

[Shot]

My point is that even the Thais prefer a 7/11 to the local m&p's, given more choice and cheaper pricing.

I must disagree with you there. Thais will flock to an m&p over 7/11 if they have the right mix. And, that is the key to having a Farang following as well. 7/11s are restricted to what they can buy; m&p can buy what they want. If an m&p shops smart, they can offer same price as 7/11 on most products, and customize there stock to fit all needs. Customers can drink a beer on site and buy 1 cigarette versus the: Get your shit, and get out 7/11 approach.

Always starting troubles arent you?

My house is on a street where there was no 7/11 yet 2 massive moobaans are located there and a very busy road.

They recently opened a 7/11 oposite of the mom&pop shop that has EVERYTHING including delivery and veggies/meat

Mmom&pop is going out of business quite fast after 2months.

So, you disagree with yourself? Referring to post 5 paragraph 3.

However, we may be just mixing words. I think some folks picture an m&p as a dusty, dimly lit store with an old smelly guy sitting in a chair behind the counter watching a TV that gets only one channel. Not what I am referring too.

[Ping]

Supercheap isnt for sale, only the owner of supercheap starts new supercheaps. He's not dumb enough to franchise it when hes making 20-40k usd per day with most of his small outlets. the one next to me makes from 1 to 2mil per day and the cashier are making up to 30k per month with comissions.

I guess that 1 to 2 million bath refers to the sales, not to the earnings.

For sales 1.2 million would be 50.000B/hour or 833 bath every minute of the day.

-> earnings.

owner of supercheap is massively rich

The CP (Charoen Pokphand) owners aren't doing too badly either...

Edited July 8, 2012 by Ping

[Hostile17]

Supercheap isnt for sale, only the owner of supercheap starts new supercheaps. He's not dumb enough to franchise it when hes making 20-40k usd per day with most of his small outlets. the one next to me makes from 1 to 2mil per day and the cashier are making up to 30k per month with comissions.

I guess that 1 to 2 million bath refers to the sales, not to the earnings.

For sales 1.2 million would be 50.000B/hour or 833 bath every minute of the day.

-> earnings.

owner of supercheap is massively rich

The CP (Charoen Pokphand) owners aren't doing too badly either...

Super cheap is only on phuket and i dont know exactly how rich he is but he cant be far from the CP guys

The branch next to me refills the store up to 20 times per day

Edited July 8, 2012 by Hostile17

[KarenBravo]

Super cheap is only on phuket and i dont know exactly how rich he is but he cant be far from the CP guys

Thanks for the laugh.

Comparing local Phuket company to Thailand's biggest multi-national company.

Good one!

[grumpyoldman]

Yea, need another 7 on Sai Yuan like I need another hole in my head.

Thanks for the depressing news..........

[Hostile17]

Super cheap is only on phuket and i dont know exactly how rich he is but he cant be far from the CP guys

Thanks for the laugh.

Comparing local Phuket company to Thailand's biggest multi-national company.

Good one!

Read a bit of finance and you'll quickly learn the owner is one of the richest person in thailand.

The whole island runs on supercheap

Edited July 8, 2012 by LivinginKata
insulting remark removed

[KarenBravo]

The man who runs CP has a net worth of US$7 billion and is the richest man in Thailand and the 131st richest man in the world.

The owner of supercheap is undeniably rich, but doesn't even come close to Dhanin Chearavanont.

Edited July 8, 2012 by LivinginKata
remark removed

[seaeagle]

The big boys, like Tops and Super Cheap, seem to understand that small, local outlets are a very good way to go.

If I were doing this, I'd be thinking of what could be done differently in the area, rather than do more of the same by way of another 7/11.

Haven't a clue who or how you'd approach it, but I'd look at going to Villa Market, and suggest to them about running an 'outlet shop' in Rawai, selling selected products. Obviously, you and the family would be managing all of this, so you get your business, but more of a quality, niche market.

[stevenl]

Back to the OP. In that area I see much less foreigner through traffic. There may be a market for Thais, but I don't see many foreigners buying there. IMO less potential than the Sai Yuan area higher up.

[silsburyhill]

Back to the OP. In that area I see much less foreigner through traffic. There may be a market for Thais, but I don't see many foreigners buying there. IMO less potential than the Sai Yuan area higher up.

The reason you wouldn't have seen many foreigners buying 'there' is because .... there's nothing for them to buy

However, a 7/11's appeal - like them or not - is glaringly obvious. Availability to a larger selection of goods at a more competitive price to Thais and farang alike.

As an aside re, again, location, do you seriously envisage the newly opened branch of the closeby Farang restaurant packing up? We are talking about a place erstwhile located behind Big C and Index with a hardly spectacular view.

I am in no way attempting to sway opinion, I am looking for pragmatism.

[stevenl]

Back to the OP. In that area I see much less foreigner through traffic. There may be a market for Thais, but I don't see many foreigners buying there. IMO less potential than the Sai Yuan area higher up.

The reason you wouldn't have seen many foreigners buying 'there' is because .... there's nothing for them to buy

However, a 7/11's appeal - like them or not - is glaringly obvious. Availability to a larger selection of goods at a more competitive price to Thais and farang alike.

As an aside re, again, location, do you seriously envisage the newly opened branch of the closeby Farang restaurant packing up? We are talking about a place erstwhile located behind Big C and Index with a hardly spectacular view.

I am in no way attempting to sway opinion, I am looking for pragmatism.

No, I don't see it happening in that area. Neither do I see Farang there getting really busy. That part of Sai Yuan is a ride through area, the top half is a destination area. You'd need something special in that area to change, Farang nor a 7/11 would suffice.

[LivinginKata]

A number of off topic post intended to trade insults all removed.